Barclays on U.S. Large-Cap & Mid-Cap Banks: Weekly Bank Briefing
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Rating Summary:
31 Buy, 10 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 5 | Down: 11 | New: 27
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Barclays on U.S. Large-Cap & Mid-Cap Banks: Weekly Bank Briefing (12/12/11)
Analyst, Jason M. Goldberg, said, "Asset Growth: Per the Fed's H.8 from Friday (week ending Nov. 30), loans jumped (+$18.7bn), marking the 3rd week of growth in past 4. Balances ended the week at their highest level since May '10."
"Capital Markets: During the week, Citi (NYSE: C) and JPMorgan (NYSE: JPM) said their core Investment Banking revenues in 4Q were running in-line with 3Q, while BofA (NYSE: BAC) said it's above. Comparing the first 9 weeks of 3Q versus the first 9 weeks of 4Q, shows debt capital markets activity is up 9%, led by IG (+48%) and HY (+39%). Equity capital markets levels are down 22% (though up 43% from the final 9 weeks of 3Q), with drops in IPOs (-50%), follow-ons (-9%), and converts (-17%). Announced M&A is down 6%, but completed M&A is up 2%. For the week, the S&P 500 rose 1%, putting it up 11% QTD. The MSCI World is up 8% QTD, while the BarCap Bond index is up 1%. After rising 22% in 3Q, QTD average daily equity volumes are 8% below the prior quarter. The VIX declined 4% last week, putting it down 39% QTD. The 3-month euro-dollar basis swap was stable at -126bps."
"Mortgage: Apps rose 13% for the week ending Dec. 2. Refis rose 15% as some indicated they are beginning to see an increase in HARP loans, while purchases rose 8% to its highest level since Aug 5. FRE said its 30yr FRM averaged 3.99% from the week ending Dec. 8, down 1bp (-62bps y-o-y) and near a record low. During the week, SunTrust (NYSE: STI) commented it is seeing increased mortgage repurchase costs in 4Q."
"Credit Quality: The reserve increased modestly (+$0.4bn) marking the 3rd gain in the past 5 weeks. Still, reserve/loans was 3.14% for the 3rd straight week (-6bps or $0.9bn QTD). During the week, HSBC (NYSE: HBC) said while saw higher delinquencies in the U.S. in Sept, Oct. witnessed stabilization. Also, BAC noted asset quality continued to improve in 4Q."
Analyst, Jason M. Goldberg, said, "Asset Growth: Per the Fed's H.8 from Friday (week ending Nov. 30), loans jumped (+$18.7bn), marking the 3rd week of growth in past 4. Balances ended the week at their highest level since May '10."
"Capital Markets: During the week, Citi (NYSE: C) and JPMorgan (NYSE: JPM) said their core Investment Banking revenues in 4Q were running in-line with 3Q, while BofA (NYSE: BAC) said it's above. Comparing the first 9 weeks of 3Q versus the first 9 weeks of 4Q, shows debt capital markets activity is up 9%, led by IG (+48%) and HY (+39%). Equity capital markets levels are down 22% (though up 43% from the final 9 weeks of 3Q), with drops in IPOs (-50%), follow-ons (-9%), and converts (-17%). Announced M&A is down 6%, but completed M&A is up 2%. For the week, the S&P 500 rose 1%, putting it up 11% QTD. The MSCI World is up 8% QTD, while the BarCap Bond index is up 1%. After rising 22% in 3Q, QTD average daily equity volumes are 8% below the prior quarter. The VIX declined 4% last week, putting it down 39% QTD. The 3-month euro-dollar basis swap was stable at -126bps."
"Mortgage: Apps rose 13% for the week ending Dec. 2. Refis rose 15% as some indicated they are beginning to see an increase in HARP loans, while purchases rose 8% to its highest level since Aug 5. FRE said its 30yr FRM averaged 3.99% from the week ending Dec. 8, down 1bp (-62bps y-o-y) and near a record low. During the week, SunTrust (NYSE: STI) commented it is seeing increased mortgage repurchase costs in 4Q."
"Credit Quality: The reserve increased modestly (+$0.4bn) marking the 3rd gain in the past 5 weeks. Still, reserve/loans was 3.14% for the 3rd straight week (-6bps or $0.9bn QTD). During the week, HSBC (NYSE: HBC) said while saw higher delinquencies in the U.S. in Sept, Oct. witnessed stabilization. Also, BAC noted asset quality continued to improve in 4Q."
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